BOC Hong Kong (Holdings) Limited · HKEX:2388
BOC Hong Kong (Holdings) — Investor Presentation (January 2014)
19 slides from BOC Hong Kong (Holdings)'s investor presentation, Jan 8, 2014
Slide 1: Bancassurance Model
Bancassurance Model Marriage of Bank and Insurer 2014.1.08
Slide 2: Market Share of Bancassurance in HK over 15 Years
Market Share of Bancassurance in HK over 15 Years 60% 50% 40% 30% 20% 10% 0% 1998 2001 2005 2008 2010 2013Q2 Year Market share 5%, Market share 55%, NB Premium 250M NB Premium 30B Source: OCI – new business, by annualized premium 2
Slide 3: Top 5 insurers 15 years ago and Now
Top 5 insurers 15 years ago and…Now Market Ranking 1998 2013 Q2 1 29.5% 1 19.3% 2 13.1% 2 14.6% 3 10.7% 3 12.6% 4 8.2% 4 9.7% 5 6.4% 5 7.5% Source: OCI – new business, by annualized premium 3
Slide 4: Mars & Venus series
Mars & Venus series ‘Aviwor oF THt Puewowenat #1 Bestseuce MEN ARE FROM MARS, Horner Are’-from Vers ch SR a 5 ($2 AL) APRA] 4 BOC HONG KONG (HOLDINGS) LIMITED
Slide 5: Core Differences between Banks and Insurers
Core Differences between Banks and Insurers Banks Insurers Short-term Business Long-term Cycle 5
Slide 6: Bank's Business Cycle
Bank’s Business Cycle Key Financials 2011 2012 Net operating income HK$30,846 +15.93% HK$35,760 million million Net profit HK$20,430 +2.45% HK$20,930 million million Basic earnings HK$1.93 +2.45% HK$1.98 per share Return on average 1.14% +10bps 1.24% total assets 6
Slide 7: Aligning the interests between a bank and its insurance subsidiary
Aligning the interests between a bank and its insurance subsidiary Value of New Business Return on Equity Strike a balance between long-term profitability and Net Total Income assets short-term profitability. 7
Slide 8: Service Culture vs Sales Culture
Service Culture vs Sales Culture Banks Insurers Service Business Sales Culture Culture Culture 8
Slide 9: Financial Planning Manager (FPM) Model
Financial Planning Manager (FPM) Model Integrated Bancassurance Process Relationship Financial Manager Refer to Planning Manager Needs-based selling approach Financial Needs Analysis + Tailor-made Insurance Proposal 9
Slide 10: Sales process and quality assurance
Sales process and quality assurance Quality Assurance Close the Assess Explore Quantify Sales & Explore Customer’s Provide Principal Selling Customer’s Explain Complete Policy Customer’s Risk Product Brochure Financial Proposal Relevant Delivery Process Needs Tolerance Information & Sales Forms for
Slide 11: What are the benefits after aligning the differences?
What are the benefits after aligning the differences ? 11
Slide 12: Million Dollar Round Table (MDRT)
Million Dollar Round Table (MDRT) MDRT is worldwide recognized as the standard of excellence in the life insurance industry. 260 Financing Planners and ~80% of them as MDRT 81.8% 78.3% MDRT and above 78.6% 202 50.5% 184 162 111 19.4% 23 2009 2010 2011 2012 2013 Nov 2009 2010 2011 2012 2013 Nov M
Slide 13: One of leading life insurers in Hong Kong Market
One of leading life insurers in 5 Years Hong Kong Market BOC Group Life Standard New Business Premium Standard New Business Premium 4,773 50,000 46,317 4,000 40,000 3,000 30,000 24,004 2,000 20,000 CAGR 18% 1,005 CAGR 48% 1,000 10,000 - - 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Source: OCI
Slide 14: Dramatic shift in product mix
Dramatic shift in product mix 2008 Product Mix 2013 Product Mix 6% 2% 1% 9% 15% 34% 85% 49% ENDOWMENT WHOLE LIFE ANNUITY OTHERS Source: BOCG Life 14
Slide 15: RMB Business Leading Position
RMB Business Leading Position We launched the very first RMB insurance product in 2009 RMB products covered customer’s long-term, mid- term and short-term needs 15
Slide 16: Bancassurance more than a distribution channel
Bancassurance more than a distribution channel Mature Couples / Retiring / Earners Families Retirees Branch & Credit card customers Non-branch customers & non-bank customers High-net-worth Young Individuals Flyers 16
Slide 17: Disclaimer
Disclaimer Products and services described in this presentation and any associated material (collectively, the “Materials”) provided by Bank of China (Hong Kong) Limited, its subsidiaries, affiliates or group companies (collectively, “BOCHK Group”), may not be suitable for persons in all jurisdictio
Slide 18: Disclaimer
Disclaimer To the extent that the financial products described in the Materials are listed in Hong Kong, they are neither endorsed, issued, sold nor promoted by The Stock Exchange of Hong Kong Limited. The Stock Exchange of Hong Kong Limited expressly disclaims any liability for any loss howsoever a
Slide 19: Thank you
Thank you Investor Relations Contact : E-mail : investor_relations@bochk.com Website : www.bochk.com
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